Interview with Sally Sara, ABC Radio National

Website search Interviewer Western Australia GST arrangements, energy usage of data centres and the East Coast Gas Reservation Scheme. SALLY SARA: To federal politics now, and the Prime Minister, Anthony Albanese, has promised Western Australia's GST arrangements will remain in place. Earlier this month, an Interim Productivity Commission report said a deal struck by Scott Morrison to boost the state's GST share was, quote, “a costly mistake and should be unwound.” Madeleine King is the Federal Minister for Resources, the Minister for Northern Australia and the member for the federal seat of Brand in Western Australia and joins me now.

Minister, welcome back to breakfast. MINISTER MADELEINE KING: Good morning, Sally. And good morning to all your listeners.

SALLY SARA: Why not wait for the Productivity Commission's final report before the PM making this guarantee? MINISTER MADELEINE KING: Well, the Productivity Commission's interim report was, I think, so far away from any expectations of what might be leading into a final report that the WA Government and Western Australians more widely, you know - and I understand this quite rightly, I did as well - reacted with great surprise to what was in the interim report.

It was a- there's no kind of halfway house in that report. It was, it was all about winding back the arrangements that the Productivity Commission itself had recommended in 2018 to the government of the day. So, I think it's a very important step that the Prime Minister has taken.

And to be fair, as soon as the interim report came out, I know that was the way he was thinking because we all had to, you know, go through that report quite reasonably. And, you know, I'm glad that our WA's share of the GST is assured and there won't be any changes. SALLY SARA: Why not take on the recommendations and concerns of this interim report?

The Productivity Commission is a respected body. It's gone through methodically to look at this. Why not take it on board?

MINISTER MADELEINE KING: Well, I don't actually quite agree that it has gone through it as methodically as it might have. When you look, if you look through the report, you'll notice there's zero reference to suggestions made by the WA Government. And this is the government representing the population that will be the most widely affected by any changes.

I mean, the report also doesn't acknowledge that no state has had to- has suffered from the current arrangements. No state has had any money taken from them or any less of it. So, I would think, and think anyone reasonable person around the country would think, that the state that will be the most affected from the changes proposed would have their submission, you know, in some kind of prominence in the interim report, or not even prominence, just some mention, but there is barely a mention.

So, I think there's a problem there and that, you know, I respect the work of the commissioners, and I also note there are no Western Australians on the Productivity Commission. And that, in a sense - SALLY SARA: Was it appropriate for the WA Premier, Roger Cook, to call the Productivity Commission authors clowns? The Prime Minister yesterday said they were economic rationalists.

Is it necessary or appropriate to disparage the work of independent public servants? MINISTER MADELEINE KING: Well, I think they are economic rationalists. I do agree with the Prime Minister on that.

And the Premier, he's reacting to a report that is going to a kibosh the finances of the state. I mean, I think it's fair enough when people say- and I was quite shocked by it myself, so I do understand the language. I might not use it myself, but I have some sympathy for it.

Absolutely. SALLY SARA: Asked about the PM's promise yesterday, the Queensland Premier David Crisafulli had this to say. Let's take a listen.

DAVID CRISAFULLI: The last change in the GST, there was only one state that went backwards in real terms, and it was Queensland. And all this does is it bakes in an inequity where, of the two big mining states, one, which is Queensland, gets penalised for doing it, the other gets propped up for doing it. And I just, I don't see the equity in that space. [End excerpt] SALLY SARA: What's your response to the Premier's comments?

MINISTER MADELEINE KING: Well, it's my understanding that all states have actually been better off since the 2018 reforms. But obviously, if Premier Crisafulli disagrees with that, I'll go have a look at his figures. But what's important to know is that states have all benefited because the iron ore royalties that Western Australia has earned for the country have been distributed for the most part, like 90 per cent all around the country.

And that's a good thing for the country. We want the industry to keep going and to keep going well, and it is good to have Western Australia incentivised to do so because everyone benefits, and that's what we've seen has happened. SALLY SARA: You're listening to Radio National Breakfast.

My guest is the Federal Minister for Resources, Madeleine King. Energy use rules for data centres will be on the agenda when National Cabinet meets tomorrow. The Federal Government wants rules to require data centre projects to purchase their power from renewable energy sources backed by gas as a firming option.

Why shouldn't data centres be powered by gas or coal alone? MINISTER MADELEINE KING: Well, what we have seen around the world is some really troubling views around data centres. I mean, we really want to be able to train these data centres in Australia so they have an Australian flavour and they reflect our values.

But if we don't- if these data centres don't have the social licence and acceptance of the community. Well, we don't get to have that kind of capacity in this country for the long term. So, what we need to do is take account of that energy use, water use, their location.

I really respect Queensland and Northern Territory, their governments trying to drive new industry and what will be a really important industry for the future of Australia, but for the future of the world as well. But if they don't have that wider acceptance from the community, we'll find this a very short-term boom where no one's really happy with it at all.

So, energy is at the forefront of people's minds, the cost of energy and having a new industry come in that's not taking account of the energy and contributing to that energy in this country via renewables backed by gas. Well, I think we'll end up on a downward spiral of the acceptance of these centres, and we really don't want that. SALLY SARA: Just finally, we've got a minute up our sleeve.

In May, the Federal Government announced it will establish an East Coast Gas Reservation Scheme starting in July next year. Are you on track to finalise the design of the scheme and get the legislation through Parliament? MINISTER MADELEINE KING: Yeah, we absolutely are, and it's been a lot of work and I really want to thank the gas industry, but also manufacturers and various governments that have contributed to the consultation phase of this.

It's been a very good process. I know not everyone will be entirely happy with the whole of the end result, but the main thing is we are laser-light-focused on making sure Australians have, and Australian companies and businesses have, an affordable gas into the future and a good oversupply or good supply of that gas for Australian manufacturing. SALLY SARA: Madeleine King, thank you for joining me this morning.

MINISTER MADELEINE KING: No, real pleasure, thank you. SALLY SARA: Madeleine King is the Minister for Resources and the Minister for Northern Australia. The Department of Industry, Science and Resources recognises the First Peoples of this Nation and their ongoing cultural and spiritual connections to the lands, waters, seas, skies, and communities.

We Acknowledge First Nations Peoples as the Traditional Custodians and Lore Keepers of the oldest living culture and pay respects to their Elders past and present. We extend that respect to all First Nations Peoples. Stay informed of the latest ministry list on the Department of the Prime Minister and Cabinet website This website is managed by the Department of Industry, Science and Resources